Credit check: Though renewed borrowing will boost demand, regulatory threats remain

The Credit Unions industry has been going through a transition over the past five years. Amid a dynamic postrecession regulatory environment and historically low interest rates, credit unions have had to rely on other sources of revenue to generate a return for their members. Over the next five years, changes in the regulatory environment will shape the direction of this industry. Recent proposals to increase reserve capital requirements for credit unions have provoked a strong response from industry operators, which have lobbied for less-stringent regulations. Despite a challenging regulatory landscape, industry revenue is expected to increase over the five years to more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • Changes in the regulatory environment will shape the direction of this industry in the coming years
  • Smaller credit unions have found it hard to compete with larger credit unions and commercial banks
  • Smaller establishments will be absorbed by larger, better-capitalized credit unions
  • Industry Report - Industry SWOT Analysis Chapter

    The Credit Unions industry is in the mature stage of its life cycle. The number of enterprises is declining and the industry's product segment is stable. Industry value added (IVA), which measures the industry's contribution to the overall economy, is expected to grow at an annualized rate of 2.8% over the 10 years to 2022. Similarly, the US economy is expected to grow at an annualized rate of 2.1% over the same period. The industry is expected to grow at a similar pace as the economy and will not be able to sustain the high IVA growth it achieved over the past five years.While credit unions have been embracing technological change and are offering more online services to contend with larger financial institutions, their overall business model and processes remain unchanged. Slo...purchase to read more.

    Additional Insights for the Credit Unions Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Unions Industry are

  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and External competition for the Credit Unions industry in the Credit Unions industry impact industry performance..

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    What is the Credit Unions Industry?

    This industry comprises financial institutions known as credit unions or cooperatives. Credit unions are member-owned and provide banking services, which primarily include deposit taking and lending, to these same members.

    Industry Products
  • New vehicle loans
  • Used vehicle loans
  • First-mortgage loans
  • Second-mortgage loans
  • Home-equity loans
  • Unsecured loans
  • Other loans
  • Industry Activities
  • Accepting members' share deposits
  • Offering members consumer loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • External competition for the Credit Unions industry
  • House price index
  • New car sales
  • Prime rate

  • Current Performance
  • Interest rates
  • Membership growth
  • Industry consolidation
  • Regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased membership
  • Rising rates
  • Table: Credit Unions Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Unions Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Home Builders
  • New Car Dealers
  • Consumers

  • Key Selling Industries
  • Finance and Insurance
  • IT Consulting
  • Professional Employer Organizations

  • Products & Services
  • First-mortgage loans
  • Used vehicle loans
  • New vehicle loans
  • Unsecured loans
  • Other loans
  • Home-equity loans
  • Second-mortgage loans
  • Chart: Credit Unions Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential market
  • Multiple-group market
  • Occupational market
  • Associational market
  • Chart: Major Market Segmentation for the Credit Unions Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Credit Unions

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Unions Industry

  • Industry Globalization
    Navy Federal Credit Union
  • Table: Navy Federal Credit Union - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Unions Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Unions Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Investor uncertainty (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Fixed Rate Loan
  • A type of loan in which the interest rate that is paid on the outstanding balance is fixed.
  • Interest Rate
  • A rate charged on funds borrowed (lended) that is repaid (paid out) over and above the principal amount borrowed (lended).
  • Mortgage
  • A loan financing the purchase of real estate with specified payment periods and a fixed or variable interest rate.
  • Why buy this report?

    IBISWorld’s industry research report on Credit Unions can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Unions:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Unions market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Unions, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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